Operation system of TATA Motors
Tata Motors is Indias largest automobile company, with revenues of US $7.2 billion in 2006 2007. With more than four million Tata vehicles on the roads in India, the company is the leader in commercial vehicles and the second largest in passenger vehicles it is also a great manufacturer of sports utility vehicle. It is also the worlds fifth largest medium and heavy truck manufacturer and the second largest heavy bus manufacturer. This target can achieved only with proper operation management with proper input and output process. To standardise the sales process, the company broke it up into a four-part cycle: enquiry, warm prospect, hot prospect (industry terminology for potential buyers), and completion of sale and vehicle delivery. Using statistical analysis on the segmented data, the company was now able to predict its sales patterns. Tata Motors then embarked on implementing a solution that also facilitated the free flow of information across the enterprise Tata Motors had no standard or benchmark to model its solution on when the relationship concept was first considered, back in 2002. The company realised that it had to look at the business in a fundamentally different way. Instead of selling to the customer, Tata Motors embarked on an ambitious programme to make its extended organisation get into the customers shoes and envision each little detail as if it was meant to serve him Once standardisation was carried out across the dealer network, results were visible almost immediately. Accurate sales forecasts, reduced inventory for the company and the dealer, and better production scheduling were only some of the benefits. A shorter delivery cycle for the customer was an important fringe advantage. The dealer management system has meant a gross reduction in the amount of working capital needed to run their businesses. Transactions between the company and dealers, which earlier took up to 60 days, are now completed online and sealed in under seven days.
Operation strategies followed by tata motors Marketing strategies of TATA motors is one of the most successful marketing strategies in automobile industry. With rapid growth in both its domestic and international business, the vehicle manufacturer wanted to introduce a slew of products to cater to burgeoning demand. To capture the market wholly there is a need to adop new strategies which would result in increased demand with lower rates. Advertising is one of the most common ways to make car buyer or car enthusiast aware of the new car with special promotion price it also proven a best way to create a brand image in the customer mind. Motors provide many innovative features to attract car lover with best quality control measures. After sales service is also another important marketing strategy for most of the car buyer to choose for the right car. End user will not want to spend a lot of time to travel to a far place just to service the car such as change engine oil, oil filter and some simple checking. Parts and accessories must also easy to access when it is needed to keep the customer satisfy from buying Tata cars until maintaining the car or even until they sell the car and change to a newer Tata model.
Tata Motors also opted for the standard cost functionality, which was a significant business process change for the company. The company took the strategic decision to go in for a SAP ERP Solution with the goal of lowering customization and upgrade costs. Risks, which emanate from attrition or change of guard in the company, would also be minimized. SAP has clear superiority in the market. Non-value-add activities have been put on the back burner
calculating Productivity of the Unit An analysis of 50 diverse firms and their annual reports shows an increase in productivity, which means fewer workers are delivering more. found that a majority of companies reported an increase in both revenue and profit per employee. Though this results in a simplistic calculation of productivity, the ratio offers an insight into increased industrial efficiency in India. Manpower productivity was improved by addressing job design and factors that impede output, says Pradeep Srivastava, president of engineering at Bajaj Auto Ltd. Simultaneously, the productivity of material and equipment was improved through process redesign, new developments in technology, equipment improvement, and process and logistics planning, in addition to reducing waste. The analysis included four Tata group companies that had revenues above Rs1,000 crore and with public data on employees. These companiesThe Tata Power Co. Ltd, Tata Steel Ltd,Tata Motors Ltd and Titan Industries Ltdall saw profits per employee increase between 30% and 80% since 2005. During that period, though, the headcount for Tata Power and Tata Steel decreased, while the other two companies remained about the same. The analysis included four Tata group companies that had revenues above Rs1,000 crore and with public data on employees. These companiesThe Tata Power Co. Ltd, Tata Steel Ltd,Tata Motors Ltd and Titan Industries Ltdall saw profits per employee increase between 30% and 80% since 2005. During that period, though, the headcount for Tata Power and Tata Steel decreased, while the other two companies remained about the same. The analysis included four Tata group companies that had revenues above Rs1,000 crore and with public data on employees. These companiesThe Tata Power Co. Ltd, Tata Steel Ltd,Tata Motors Ltd and Titan Industries Ltdall saw profits per employee
increase between 30% and 80% since 2005. During that period, though, the headcount for Tata Power and Tata Steel decreased, while the other two companies remained about the same.
